Insider Decision: Paola PerezSurillo Offloads $623K Worth Of Evertec Stock

Paola PerezSurillo, Executive Vice President at Evertec EVTC, executed a substantial insider sell on September 3, according to an SEC filing.

What Happened: PerezSurillo's decision to sell 18,253 shares of Evertec was revealed in a Form 4 filing with the U.S. Securities and Exchange Commission on Tuesday. The total value of the sale is $623,113.

During Wednesday's morning session, Evertec shares up by 0.3%, currently priced at $33.72.

Delving into Evertec's Background

Evertec Inc is a transaction processing business in Latin America and the Caribbean. Its business segments are Merchant Acquiring, Payment Services - Puerto Rico & Caribbean, Latin America Payments and Solutions, and Business Solutions which derive maximum revenue. The company serves a diversified customer base of financial institutions, merchants, corporations, and government agencies with mission-critical technology solutions that enable them to issue, process, and accept transactions securely.

Evertec's Economic Impact: An Analysis

Positive Revenue Trend: Examining Evertec's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 26.88% as of 30 June, 2024, showcasing a substantial increase in top-line earnings. When compared to others in the Financials sector, the company excelled with a growth rate higher than the average among peers.

Insights into Profitability:

• Gross Margin: The company sets a benchmark with a high gross margin of 54.01%, reflecting superior cost management and profitability compared to its peers.

• Earnings per Share (EPS): Evertec's EPS lags behind the industry average, indicating concerns and potential challenges with a current EPS of 0.5.

Debt Management: The company faces challenges in debt management with a debt-to-equity ratio higher than the industry average. With a ratio of 2.01, caution is advised due to increased financial risk.

Financial Valuation:

• Price to Earnings (P/E) Ratio: The Price to Earnings ratio of 32.02 is lower than the industry average, indicating potential undervaluation for the stock.

• Price to Sales (P/S) Ratio: The current P/S ratio of 2.82 is below industry norms, suggesting potential undervaluation and presenting an investment opportunity for those considering sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): The company's EV/EBITDA ratio 11.58 is below the industry average, indicating that it may be relatively undervalued compared to peers.

Market Capitalization Analysis: Below industry benchmarks, the company's market capitalization reflects a smaller scale relative to peers. This could be attributed to factors such as growth expectations or operational capacity.

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The Relevance of Insider Transactions

Insider transactions shouldn't be used primarily to make an investing decision, however, they can be an important factor for an investor to consider.

When discussing legal matters, the term "insider" refers to any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, as stipulated in Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are required to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.

A new purchase by a company insider is a indication that they anticipate the stock will rise.

On the other hand, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.

Breaking Down the Significance of Transaction Codes

When analyzing transactions, investors tend to focus on those in the open market, detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase,while S signifies a sale. Transaction code C signals the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.

Check Out The Full List Of Evertec's Insider Trades.

This article was generated by Benzinga's automated content engine and reviewed by an editor.